Apprentices bring fresh energy and long-term value to an organisation. They learn while they work, gaining practical skills that align directly with your business needs. With government support available through subsidies and incentives, hiring apprentices can be a smart investment in businesses future.
As with all employment decisions however, it’s important to consider the possible downsides.
For example, providing the close supervision an apprentice needs, particularly in their first year, can be testing when you’re working against the clock. You have to release them for formal training and pay for that time. There’s also a risk that your apprentice will fail to complete their training – though evidence suggests that those who experience a positive workplace culture and receive appropriate support are more likely to finish their apprenticeship and continue working for the same company.
Of greater concern is the increased risk of workplace injuries. Safe Work Australia found that apprentices are significantly more likely to be involved in an accident than more experienced employees.
“Apprentices are classified as being in a vulnerable worker group because of this higher risk, particularly in areas involving high risk manual work such as construction and manufacturing,” says Annette O'Brien, Steadfast technical broking manager. “Insurance must be a priority, and the right insurances are critical.”
Finding the cover you need
Workers compensation insurance is mandatory for all employees, including apprentices, in every state and territory in Australia.
“While not legally required, public liability insurance is also advisable as this can protect your business if an apprentice accidentally causes injury to a third party or damages property,” says O’Brien.
Depending on where and how your apprentice will work you may also benefit from other types of cover.
- Commercial motor vehicle insurance. If your apprentice drives company vehicles, commercial motor vehicle insurance is strongly encouraged. Make sure they’re listed on the policy as an authorised driver – some insurers will ask you to name them, especially if they’re under 25.
- General property cover under a Business Pack. In industries where tools are used, General Property cover can provide cover for such things as tools. Tools are easy to lose and are often a target for thieves.
- Product liability insurance. An example of where product liability insurance is recommended is if you work in hospitality and an apprentice prepares or serves food that causes illness or an allergic reaction. Another example is if you are a manufacturer and an apprentice has worked on a product or installation that later causes injury or damage.
“Some insurers offer packages designed for particular trades such as hospitality and construction,” says O’Brien. “Others can be tailored to your company or your sector-specific risks.”
A culture of safety
As with other types of cover, insurers will require you to comply with a range of requirements before providing protection for you and your apprentices. As these will include legal, safety and training obligations, they will also help you to mitigate risk and maintain a culture of safety.
Find a Steadfast Insurance Broker near you
Important notice - Steadfast Group Limited ABN 98 073 659 677 and Steadfast Network Brokers
This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.
Information is current as at the date the article is written as specified within it but is subject to change. Steadfast Group Ltd and Steadfast Network Brokers make no representation as to the accuracy or completeness of the information. Various third parties have contributed to the production of this content. All information is subject to copyright and may not be reproduced without the prior written consent of Steadfast Group Limited.